-wage countries reduces costs allowing exporters to compete on price. Second, we find that Germany is the leading quality exporter in …, Germany's exports are less vulnerable to price increases, while exports from France and Italy respond strongly to price …

We analyse the adjustment of retail and services prices in a period of low inflation, using a set of individual price … data from the German Consumer Price Index which covers the years 1998 to 2003. We strong find evidence of time- and state …-dependent price adjustment. Most importantly, the differences in unconditionalʺ sectoral price flexibility are found to be linked to …